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12. Coca-Cola has an overall beta of 0.55 and a cost of equity of 8.9 percent for the firm overall. The firm is 100 percent

12. Coca-Cola has an overall beta of 0.55 and a cost of equity of 8.9 percent for the firm overall. The firm is 100 percent financed with common stock. The Powerade division, within Coca- Cola, has an estimated beta of 1.08 and is the riskiest of all the firm's operations. What is an appropriate cost of capital for their Powerade division if the market risk premium is 9.5 percent

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